Decision No. 149/2003/QD-TTg on a number of policies and mechanisms to encourage the development of Vietnam's sea-going fleet

OFFICIAL GAZETTE No. ·111 (02:-f!-200::-.) THE PRIME MINISTER DECISION No. 149/2003/QD-TTg OF JULY 21, 2003 ON A NUMBER OF POLICIES AND MECHANISMS TO ENCOURAGE THE DEVELOPMENT OF VIETNAM'S SEA-GOING FLEET THE PRIME MINISTER Pursuant to the December 25, 2001 Law on Organization of the Government; Pursuant to the Vietnam Maritime Code of June 30, 1990; Pursuant to the Government's Resolution No. 02/ 2003/NQ-CP of January 17, 2003 on a number of major undertakings and solutions for the performance of the 2003 socio-economic development tasks, whfch require concentrated df rection; Proceeding from the comments of the ministries and branches at the February 24, 2003 n:eeting; At the proposal of the Ministry of Communications and Transport in Report No. 1754/lTr-BGTVT of April 29, 2003 and the Justice Ministry's eval, 1ation comments in Official Dispatch No. 360/TP-HTOTof May 30, 2003, DECIDES: Article 1.-Scope and objects of application This Decision prescribes a number of policies and mechanisms to encourage the development of Vietnam's sea-going fleet, and at the same time promote the transportation of import and export goods by Vietnamese shipping enterprises. Article 2.- Interpretation of terms In this Decision, the following phrases are construed as follows: 1. "Vietnamese shipping enlr~rprisoi," moe:1 enterprises set up under the St~1te Enterprise • ... aw c, the Enterprise Law, which h,1ve ,,ea-goi11g ,;hips registered to fly the Vietnamese !lag. 2. "Goods originating from the State budqer 1110,11, the goods lots procured by financial sources o ,ig;no ti;19 from the State budget, the Government's loans, ioroir;n aid provided to the Government, or !tie Gov0rr.menl'i; goods as debt repayment to foreign countrie:,. 3. "Goods being national natural resourrns'" mean the goods lots belonging to the natural msourcer.: exploited in Vietnam, including crude oil, pit-coal, clinker and other minerals which organizations and irdi 1idu2cl:, are permitted to export. 4. "Domestic transportation" mew1s the transportation of passengers, cargo, supp!ie~~. equipment, raw materials, fuel and materials by sea-· going ships between seaports within the Vietnamese territory. Article 3.- A number of mechanisms tc :::upport Vietnamese shipping enterprises 1. Regarding cargo transportation: a/ For export and import goods with financial sourc:e:i originating from the State budget, Vietnamese sliippinr1 enterprises shall gain the right to transpo,1 thern, excep r otherwise provided for by the internaticnal treat es which Vietnam has signed. In cases where Viemamese shipping enterprises are incapable of transport:ng thP abovE1-said goods, they may use foreign sea-going sh ipt., to transport them according to the provisions in Article 5 of this Decision. b/ For domestically transported goods, Vietnames::; shipping enterprises shall be given primity to : ran sport them, except otherwise provided for by the into rn atio n8 ! treaties which Vietnam has signed. In cases where Vietnamese shipping enterprises ~,re incaoabio uf No.111 (02-8-2003) OFFICIAL GAZETTE transporting such goods, they may use foreign sea­ going ships to transport them according to the provisions in Article 5 of this Decision cl Vietnamese shipping enterprises shall be prioritized to transport goods being national natural resources, except otherwise provided for by the international treaties which Vietnam has signed. 2. A number of financial supports: a/ For ships hired by mode of bareboat charter and time charter, shipping enterprises shali be exempt from income tax within the contracts' terms. b/ For ships loan-purchased or hire-purchased, shipping enterprises shall be exempt trom income tax for the fitsto2years after taxable incomes are generated and entitled to 50°/4 reduction of the payable tax amount for the o? subsequent years. cl Vietnamese shipping enterprises shail be entitled to borrow preferential credits from the Development Assistance Fund in order to develop their f lotilas fleet according to the current regulations. di For Vietnam National Shipping Lines (VINALINES), apartJrom the application of the provisions at Points a, band c above, annually (in the period from 2003 tlll the end of 2005), it shall also be entitled to the following preferences: It shall be apportioned with adequate capital by the Development Assistance Fund and may retain the whole amount of annual enterprlse income tax of its member units, including VI NAUN ES' income tax amountsin joint­ venture corn pan ies and joint,stock companies attached· to it, which shall be considered the additional budget allocation for use as reciprocal capital for borrowing capital from the DevelopmentAssistarx;e Fund in order to pertorm contracts signed with Vietnam Shipbuilding Corporation for the building of 32 new ships according to the plan already approved by the Prime Minister. 3. In cases where domestic shipyards are incapable of meeting the demands, or when the Development Assistance Fund is incapable of providing loans for the imp I em entati on of domes! ic sh i pbu i I dm rJ pr J 10 c\", Vietnamese shipping enterprises may purchai;e foreir,:, sea-going ships according to the current regulations 4. Foreign investment licenses shall ,1ot bu granted for the establishment of joint-vrmture cornpanic-Js o: business cooperation contracts for s:?a transpor:stior'. when the Vietnamese side contributes less than ::i1 ':<1 of the legal capital, except othe;wise providac for by the international treaties which Vietnam has f;igned. 5. Vietnamese shipping enterpris8s shall heve tr1H responsibilities: al To efficiently use se11-mobilized financial soUi'ces and financial sources provided as proferentiat loans in order to attain the objectives of developing Vietnam's sea-going fleet with a view to step by step increasing the Vietnamese sea-going fleet's market share for transportation of import and export goods. b/To take measures and commit to fully perform its responsibilities strictly according to thP contrarts signBd with the goods owners in strict accordance with :aw provisions and international practices, and apply the freight levels competitive to the ave1 agc1 lev13l1; in tnu region. Article 4.-A number of tin ancial supports i or gooci.s owners using sea-going ships of Vietnamese shippinu enterprises 1. Owners of the goods lots imported and exported under FOB purchase or CIF sale contracts (r"E,gi,rdles::\ of theirflnancial origins), that sign transportation contracts With Vietnam's sea-going fleet, shall be considered for the reduction of export tax 01· import tax. The Ministry of Finance shall specify this ma1ter. 2. Owners of the export goods lots cum~nt-y aiigibk; for 0% tax rate, that sign transportation contia<. ts witl, Vietnam's sea-going fleet, shall be cor;sidert,d 'or fr(, ig! ·. support from the Export Support Fund. A1ticle 5.- Tmnsportation of don:e:::.tic Q( ,o,·:s :1n.t OFFICIAL GAZETTE No. 111 (02-8-2003) goods originating from the State budget by foreign sea­ going ships For the transportation of domestic goods and goods originating from the State budget, when Vietnamese sea-going ships are incapable of Iran sporting them, the Ministry of Communications and Transport shall permit the use of foreign sea-going ships according to the following process: al Goods owners or Vietnamese shipping enterprises shall send their written requests to the Ministry of Communications and Transport, clearly stating the reasons for the use of foreign sea-going ships; blWithin 15 days after receiving the written requests from the goods owners or Vietnamese shipping enterprises, the Ministry of Comm1Jnications and Transport shall issue documents, pmmitting or not permitting (clearly stating reasons therefor) the use of foreign sea-going ships for the tr~nsportation after consulting with Vietnam Ship Owners' Association. Article 6.- Responsibilities of the ministries and branches 1. The Ministry of Communications and Transport: a/To assume the prime responsibility and coordinate with the concerned ministries and branches in scrutinizing and taking measures to overcome and redress cases of violating the regulations of the Vietnam Maritime Code and the current regulations on goods transportation by sea along domestic mutes. bl To assume the prime responsibility and coordinate with the concerned ministries and branches in reviewing and proposing the amendment and/or supplementation of legal documents, ensuring the synchronism and effectiveness in encouraging Vietnam's fleet to develop and quickly occupy market for trnnsportation of domestic, import and export goods u~der the conditions of international economic integratiori; and at the same time assume the prime responsibility and coordinate with the concerned ministries and branches in study inc; policies to encourage the importing and oxpartin~: enterprises to use transportation se r'/ices pr ( ,vi ·'Jeri h ,, Vietnamese shipping enterprises. cl To elaborate and promulgate or sJbmii tc competent agencies for promulgation the rwJLiatiom. related to the management of freights as VI(dl SB maritime service prices and charges. di To direct Vietnam National M;:1ritime Bureau tu make statistics, monitor and detect for timely h,mdlir,~' according its competence or report to ccm;:ietGni. authorities for handling the cases of contravon'ng ttv: provisions in this Decision. el To direct Vietnam National Maritime Eureau tc, examine and supervise maritime transpottation arid service enterprises in the implementation of the provisions in the Government's Decrees No. 57/2001/ ND-CP of August 24, 2001 on sea shippin9 service busim~ss and No. 1012001/NO-CP of March IS, 200! on maritime service business, and those in th is :Jecis ion, in order to establish order and a healthy bu;,in 1:;1t~:': environment, ensuring the interests of Vie':nnrnAsn shipping enterprises and the nation.:-J i:1tereus in tl~,-­ above-said domains. 2. The Ministry of Finance: a/ To guide and direct its attached agencies ano guide enterprises in implementing the regulations in Clause 1, Article 4 of this Decision. bl To coordinate with the Mini:,try of ·!"rade !:, implementing the regulations in Clat,se 2, Artic1e 4 of this Decision. c/ To coordinate with the Ministry of Plannino am: Investment and the Ministry of Com:nunicat1ons and Transport in implementing the regulations at Points a band c, Clause 2, Article 3 of this Decision. di To guide and direct Vietnam National :3r.ipping Lines in managing and using efficiently the fir;ancia; amounts mentioned at Point d, Clause 2, Ar'ic'e 3 o: No. 111 (02-8-2003 OFFICIAL GAZETTE this Decision for the right purposes. 3. Vietnam Ship Owners' Association: a/To coordinate with the Ministry of Communications and Transport, the Ministry of Trade and relevant agencies in providing information on import/ export goods transportation market for Vietnamese shipping enterprises. b/ To coordinate with the concerned agencies in assisting Vietnamese shipping enterprises to step by step increase the market share for imporVexport goods transportation. c/ To advise the Ministry o1 Communications and Transport on studying policies to ·,encourage the importing and exporting enterprises to use the transportation services provided by Vietnamese shipping enterprises. d/ Td closely coordinate with Vietnam National Maritime Bureau and relevant agencies in detecting cases of contravening the regulations in this Decision and other relevant regulations, report .:,uch to Vietnam National Maritime Bureau or competent authorities for timely handling measures according to law provisions. Article 7.- Implementation provisions 1 . This Decision takes effect 15 days after its publication in the Official Gazette. 2. The ministers, the heads of the ministerial-level agencies, the heads of the agencies attached to the Government, the presidents of the Peopt~'s Committees of the provinces and centrally-run cities: the Director of Vietnam National Maritime Bureau, the Chairman of the Managing Board and the General Director of Vietnam National Shipping Lines, .other relevant corpora Hons and the Chairman of Vietnam Ship Owners' Association shall have to implement this Decision. For the Prime Minister Deputy Prime Minister NGUYEN TAN PUNG